The burden of Canadian debt has hit a record high, with no foreseeable deceleration in sight. Canadians now owe 1.68$ worth of debt for every 1$ of income, with a 2% rise in debt outpacing only a 0.5% rise in income. This imbalance makes Canadians particularly vulnerable to unpredictable financial shock, like a sudden loss of income or a mortgage crisis.
Years of accessible low interest rates and booming housing markets have increased the country’s mortgage debt to 1.29 trillion. Consumer credit is in an even worse state at 1.97 trillion owed. For the first time ever, Canadian debt has surpassed the national GDP.
With the strain of personal debt affecting everyday life, what can the average Canadian do to reduce their debt? Check out the infographic below to learn more about the state of the household debt in Canada and discover a few helpful tips to change your spending habits.
Sourced from https://loanandgo.ca/resources-center/householddebt/